NSE introduces trading on weekly F&O contracts for EUR-INR, GBP-INR, JPY-INR currency pairs

National Stock Exchange of India (NSE) on December 7 said it launched weekly futures and options contracts on the EUR-INR, GBP-INR and JPY-INR currency pairs in the currency derivatives segment from December 7, 2020.

NSE currently offers cash-settled futures and options on 4 FYCINR pairs - USD-INR, EUR-INR, GBP-INR and JPY-INR and 3 cross currency pairs – EUR-USD, GBP-USD and USD-JPY.

As per a statement released by NSE, the contract cycle available is 12 serial monthly contracts in futures and 3 serial monthly contracts followed by 3 quarterly contracts of the cycle March/June/September/December in options.

With the launch of weekly derivatives in these currency pairs, participants will be able to manage their exposures more efficiently in a market with tight bid-ask spreads as compared to the OTC markets, the NSE statement said.

"NSE is launching a weekly future's contract for the first time, while we have already seen market acceptance in weekly options contracts across asset classes," said NSE MD & CEO Vikram Limaye.

"The weekly derivatives on currency pairs apart from reducing time-related costs will also help market participants to hedge their currency exposure from short-term market movements," he said.

NSE said eleven serial weekly contracts expiring on Fridays are being made available, excluding the expiry week wherein monthly contracts will expire on that Friday.

"The underlying, contract size, tick size, quotation, strike scheme and trading hours remain the same. The final settlement prices are exchange rates for relevant currency pairs published by the Financial Benchmarks India Pvt. Ltd. (FBIL)," NSE said.